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Corporate Data Breach Highlights the Need for Better Compliance Standards

SecurityLast December, a group of hackers in Europe stole 40 million credit and debit card numbers and the personal information of Target customers in the United States . The data breach made national and international news. As a result, the corporation is dealing with more than 90 lawsuits from customers who sued Target alleging negligence and seeking compensation. In March, the company’s chief information officer voluntarily resigned .

The breach has put pressure on the retail industry to increase its security and invest in resources that can help protect consumers and other stakeholders. But in reality, cybercrime can impact any company, and every business is a potential target.

According to the Internet Crime Complaint Center, a total of 289,874 consumer complaints were filed with the center in 2012. Thirty-nine percent of those complaints resulted in a financial loss totaling more than $500 million. Clearly, cybercrime is a serious threat that can be financially devastating for its victims.

In addition to improving their security measures, companies can take steps to protect themselves by enforcing better compliance standards. As a best practice, employers should consider focusing on their HR, tax and payroll functions and invest in solutions that will help them track data and monitor for discrepancies. With better tools, companies can more easily identify problems and make operational changes before it’s too late. Platforms such as ADP SmartComplianceSM can help.

The benefits of investing in compliance can extend beyond security – according a recent survey conducted by ADP in collaboration with CFO Research, a strong employment-related tax and payment compliance program can help boost employee productivity and operational efficiency, improve corporate brand and reputation, and increase overall profitability.

Compliance seems like an investment that could potentially offer a sizable return. We invite you to share your thoughts with us – what is your company doing to help improve compliance?
 

 


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